Capitaline

Results 06-Nov-23

Analysis

Aarti Industries

PBT down 45%

Consolidated net sales of Aarti Industries has declined 13.71% to Rs 1454 crore. Operating profit margin has jumped from 15.85% to 16.02%, leading to 12.73% decline in operating profit to Rs 233.00 crore. Raw material cost as a % of total sales (net of stock adjustments) increased from 50.61% to 58.44%. Purchase of finished goods cost fell from 3.74% to 1.53%. Employee cost increased from 6.00% to 6.60%. Other expenses fell from 22.40% to 17.88%.

PBIDT fell 12.73% to Rs 233 crore. Provision for interest rose 31.82% to Rs 58 crore.

PBDT fell 21.52% to Rs 175 crore. Provision for depreciation rose 27.40% to Rs 93 crore.

Profit before tax down 45.33% to Rs 82.00 crore. Share of profit/loss were nil in both the periods. Provision for tax was credit of Rs 9 crore, compared to debit of Rs 26 crore. Effective tax rate was negative 10.98% compared to 17.33%.

Minority interest was nil in both the periods. Net profit attributable to owners of the company decreased 26.61% to Rs 91.00 crore.

Equity capital decreased from Rs 181.25 crore as of 30 September 2022 to Rs 181.00 crore as of 30 September 2023 . Per share face Value remained same at Rs 5.00.

Promoters’ stake was 43.57% as of 30 September 2023 ,compared to 44.16% as of 30 September 2022 .

For year-to-date (YTD) results analysis

Net sales (including other operating income) of Aarti Industries has declined 12.99% to Rs 2868 crore.

Operating profit margin has declined from 16.66% to 15.10%, leading to 21.13% decline in operating profit to Rs 433.00 crore. Raw material cost as a % of total sales (net of stock adjustments) increased from 52.36% to 57.32%. Purchase of finished goods cost fell from 3.75% to 3.60%. Employee cost increased from 5.80% to 6.73%. Other expenses fell from 20.78% to 17.77%.

PBIDT fell 21.13% to Rs 433 crore. Provision for interest rose 11.36% to Rs 98 crore. Loan funds rose to Rs 3,207.00 crore as of 30 September 2023 from Rs 2,767.46 crore as of 30 September 2022. Inventories rose to Rs 1,196.00 crore as of 30 September 2023 from Rs 923.79 crore as of 30 September 2022. Sundry debtors were lower at Rs 785.00 crore as of 30 September 2023 compared to Rs 1,171.91 crore as of 30 September 2022. Cash and bank balance rose to Rs 433.00 crore as of 30 September 2023 from Rs 230.77 crore as of 30 September 2022. Investments declined from Rs 28.29 crore as of 30 September 2022 to Rs 24.00 crore as of 30 September 2023.

PBDT fell 27.33% to Rs 335 crore. Provision for depreciation rose 25.52% to Rs 182 crore. Fixed assets increased to Rs 6,190.00 crore as of 30 September 2023 from Rs 5,373.00 crore as of 30 September 2022.

Profit before tax down 51.58% to Rs 153.00 crore. Share of profit/loss were nil in both the periods. Provision for tax was credit of Rs 7 crore, compared to debit of Rs 56 crore. Effective tax rate was negative 4.58% compared to 17.72%.

Minority interest was nil in both the periods. Net profit attributable to owners of the company decreased 38.46% to Rs 160.00 crore.

Equity capital decreased from Rs 181.25 crore as of 30 September 2022 to Rs 181.00 crore as of 30 September 2023 . Per share face Value remained same at Rs 5.00.

Promoters’ stake was 43.57% as of 30 September 2023 ,compared to 44.16% as of 30 September 2022 .

Cash flow from operating activities increased to Rs 679.00 crore for YTD ended September 2023 from Rs 218.00 crore for YTD ended September 2022. Cash flow used in acquiring fixed assets during the YTD ended September 2023 stood at Rs 575.00 crore, compared to Rs 577.00 crore during the YTD ended September 2022.

The scrip trades at Rs 460

Aarti Industries : Consolidated Results
Particulars	2309 (03)	2209 (03)	Var.(%)	2309 (06)	2209 (06)	Var.(%)	2303 (12)	2203 (12)	Var.(%)
Net Sales	1,454	1,685	-14	2,868	3,296	-13	6,619	6,086	9
OPM (%)	16.0	15.9		15.1	16.7		16.5	28.3
OP	233	267	-13	433	549	-21	1,089	1,720	-37
Other Inc.	0	0	-	0	0	-	0	1	-
PBIDT	233	267	-13	433	549	-21	1,089	1,721	-37
Interest	58	44	32	98	88	11	168	102	64
PBDT	175	223	-22	335	461	-27	921	1,619	-43
Depreciation	93	73	27	182	145	26	310	246	26
PBT	82	150	-45	153	316	-52	611	1,372	-55
Share of Profit/(Loss) from Associates	0	0	-	0	0	-	0	0	-
PBT before EO	82	150	-45	153	316	-52	611	1,372	-55
EO Income	0	0	-	0	0	-	0	0	-
PBT after EO	82	150	-45	153	316	-52	611	1,372	-55
Taxation	-9	26	LP	-7	56	LP	66	186	-65
PAT	91	124	-27	160	260	-38	545	1,186	-54
Minority Interest (MI)	0	0	-	0	0	-	0	0	-
Net profit	91	124	-27	160	260	-38	545	1,186	-54
EPS (Rs)*	#	#		#	#		15.0	32.7
Notes
* EPS is on current equity of Rs 181.25 crore, Face value of Rs 5, Excluding extraordinary items.
# EPS is not annualised
bps : Basis points
EO : Extraordinary items
Figures in Rs crore
Source: Capitaline Corporate Database

Previous News

Aarti Industries
( Results - Analysis 09-May-23 09:19 )

Aarti Industries consolidated net profit declines 81.18% in the December 2022 quarter
( Results - Announcements 03-Feb-23 17:51 )

Aarti Industries fixes record date for interim dividend
( Market Beat - Reports 03-Feb-23 19:05 )

Aarti Industries
( Results - Analysis 09-Aug-23 15:15 )

Aarti Industries announces cessation of directors
( Corporate News - 23-Sep-23 11:29 )

Aarti Industries fixes record date for issue of bonus shares
( Market Beat - Reports 25-May-21 09:44 )

Aarti Industries consolidated net profit rises 23.33% in the March 2021 quarter
( Results - Announcements 19-May-21 08:15 )

Aarti Industries allots 13,178 equity shares under ESOP
( Corporate News - 04-Jul-24 20:31 )

Aarti Industries signs long term supply agreement with a MNC
( Corporate News - 18-Jan-24 09:08 )

Aarti Industries schedules board meeting
( Corporate News - 03-Nov-22 10:52 )

Aarti Industries to hold board meeting
( Corporate News - 29-Jul-21 13:41 )